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H&R Block, Inc. | 2014 Form 10-K 1
INTRODUCTION
"H&R Block," "the Company," "we," "our" and "us" are used interchangeably to refer to H&R Block, Inc. or to H&R
Block, Inc. and its subsidiaries, as appropriate to the context.
Specified portions of our proxy statement are "incorporated by reference" in response to certain items. Our proxy
statement will be made available to shareholders in July 2014, and will also be available on our website at
www.hrblock.com.
FORWARD-LOOKING STATEMENTS
This report and other documents filed with the Securities and Exchange Commission (SEC) may contain forward-
looking statements. In addition, our senior management may make forward-looking statements orally to analysts,
investors, the media and others. Forward-looking statements can be identified by the fact that they do not relate
strictly to historical or current facts. They often include words or variation of words such as "expects," "anticipates,"
"intends," "plans," "believes," "seeks," "estimates," "projects," "forecasts," "targets," "would," "will," "should,"
"could," "may" or other similar expressions. Forward-looking statements provide management's current expectations
or predictions of future conditions, events or results. All statements that address operating performance, events or
developments that we expect or anticipate will occur in the future are forward-looking statements. They may include
estimates of revenues, income, earnings per share, capital expenditures, dividends, stock repurchase, liquidity, capital
structure or other financial items, descriptions of management's plans or objectives for future operations, services
or products, or descriptions of assumptions underlying any of the above. All forward-looking statements speak only
as of the date they are made and reflect the Company's good faith beliefs, assumptions and expectations, but they
are not guarantees of future performance or events. Furthermore, the Company disclaims any obligation to publicly
update or revise any forward-looking statement to reflect changes in underlying assumptions, factors, or expectations,
new information, data or methods, future events or other changes, except as required by law.
By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results
to differ materially from those suggested by the forward-looking statements. Factors that might cause such differences
include, but are not limited to, a variety of economic, competitive, operational and regulatory factors, many of which
are beyond the Company's control. Investors should understand that it is not possible to predict or identify all such
factors and, consequently, should not consider any such list to be a complete set of all potential risks or uncertainties.
Details about risks, uncertainties and assumptions that could affect various aspects of our business are included
throughout this Form 10-K. Investors should carefully consider all of these risks, and should pay particular attention
to Item 1A, "Risk Factors," and Item 7 under "Critical Accounting Policies" of this Form 10-K.
PART I
ITEM 1. BUSINESS
GENERAL DEVELOPMENT OF BUSINESS
H&R Block, Inc. was organized as a corporation in 1955 under the laws of the State of Missouri and has subsidiaries
that provide tax preparation, banking and other services. A complete list of our subsidiaries can be found in Exhibit
21.
Our Tax Services segment provides assisted income tax return preparation, digital do-it-yourself (DIY) tax solutions
and other services and products related to income tax return preparation to the general public primarily in the United
States (U.S.) and its territories, Canada and Australia. This segment also offers retail banking services in the U.S. through
H&R Block Bank (HRB Bank), a federal savings bank.
In April 2014, our subsidiaries, HRB Bank and Block Financial LLC, the sole shareholder of HRB Bank (Block Financial),
entered into a definitive Purchase and Assumption Agreement (P&A Agreement) with BofI Federal Bank, a federal
savings bank (BofI). Pursuant to the P&A Agreement, HRB Bank will sell certain assets and assign certain liabilities,
including all of HRB Bank's deposit liabilities, to BofI (P&A Transaction), subject to various closing conditions, including
the receipt of certain regulatory and other required approvals, entry into certain additional agreements, and the
fulfillment of various other customary conditions.